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Pepperdine University School of Law

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Monday, July 16, 2012

TIGTA: IRS Did Not Follow Law in 22% of Seizures of Taxpayers' Property

TIGTA The Treasury Inspector General for Tax Administration today released Fiscal Year 2012 Review of Compliance With Legal Guidelines When Conducting Seizures of Taxpayers’ Property (2012-30-072):

TIGTA reviewed a random sample of 50 of the 747 seizures conducted from July 1, 2010, through June 30, 2011, to determine whether the IRS is complying with legal and internal guidelines when conducting each seizure. In the majority of seizures, the IRS followed all guidelines, and TIGTA did not identify any instances in which the taxpayers were adversely affected. However, in 11 seizures, TIGTA identified 14 instances in which the IRS did not comply with a particular I.R.C. requirement. Specifically, TIGTA found:

  • The sale of the seized property was not properly advertised. (I.R.C. § 6335(b))
  • The amount of the liability for which the seizure was made was not correct on the notice of seizure provided to the taxpayer. (I.R.C. § 6335(a))
  • Proceeds resulting from the seizure were not properly applied to the taxpayer’s account. (I.R.C. § 6342(a))
  • Information relating to the sale of the seized property was either incorrect or not provided to the taxpayer. (I.R.C. § 6340(c))
When legal and internal guidelines are not followed, it could result in the abuse of taxpayers’ rights.

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